Why entrepreneurs love pawnbrokers

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The new breed of entrepreneurs is turning to un-expected source for their fast finance and helping to the industry shed the old low-value image. Many business people often find they need a quick, high-value loan, for sometimes as short as a few days or weeks, or as long as three months. Maybe a repayment is due, stock must be brought, a deposit paid or a limited time offer needs to be taken. Lending a large amount from your bank can be hard if it has to be fast and they already have your other lending, which might be affected.

Many deals are lost because the business does not have the funds to take them, they might be expanding fast but need to hold capital in reserve. Often, a great deal comes along, and you have to grab it quickly as many others will come to claim it.

Opportunity loan:

A customer of ours owns a used car dealership. He had a customer who came in an offered him an E-type jaguar, 1967, white, and had only done 897 miles and he wanted only £15,000.00 but needed it within 48 hours, or he would sell somewhere else. Now our friend knows that if he can get this car, he will make around £10,000 in profit, but he needs the £15,000 asap. He unlike me, he has high savings, he also has a friend who sometimes goes half share, but he will lose half the profit. He has a collection of one watch. His own 2007 stainless steel Daytona, which he lends £10,000 against and buys the car and resells it within two months.

There are not many situations where you can get £10,000 in 24 hours, and this is for someone unknown to the broker. Many of the new breed of entrepreneurs are developing a relationship with a luxury pawnbroker because when opportunity knocks, they don’t want to be left behind.

 

Overdrafts:

Some time businesses find themselves in the situation of needing to spend money to make it, and their bank won’t help them. One deal recently we lent £30,000 pound to a businessman, who used the funds to produce an order he had received for his metal doors and shutters business. He had an order from a local council, and while it represented high profit, he knew they would pay months after he did the job and he literally could not afford the materials. His bank would not lend him more, and if they did, it would be a high-interest overdraft or unsecured loan.

This way, he borrowed against a watch and some jewellery that he owned. He was able to complete the high profit job and secure a new client. Many businesses face a time when they need some extra funds, or they would miss out on a deal.

If you run a business, be it brick and mortar, are a trader or collector and you need a fast cash loan. A pawnbroking loan can be perfect for you. In this modern world it is one of the quickest and most affordable, and this is why the image of the pawnshop is getting better and better. Having an answer to the question ‘where would I borrow £20,000 in 24 hours.’

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On October 18, 2019
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Hopkins & Jones Ltd is a trade member of The NPA (The National Pawnbrokers Association). Hopkins and Jones Limited, Company registration Number 433606. Registered Office, 7 William IV Street, London, WC2N 4DW. Hopkins and Jones Limited are authorised and regulated by the Financial Conduct Authority licence No 6520002 for the provision of pawnbroking loans.